Not upheld: Motor insurance, total loss valuation complaint against AA Underwriting Insurance Company Limited
Financial Ombudsman decision DRN-6442692 of 2026-06-19T00:00:00+00:00. Motor insurance, total loss valuation complaint against AA Underwriting Insurance Company Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6442692 |
|---|---|
| Decision date | 2026-06-19T00:00:00+00:00 |
| Firm | AA Underwriting Insurance Company Limited |
| Product | Motor insurance |
| Claim type | Motor insurance, total loss valuation |
| Outcome | Not upheld |
| Remedy | AA Underwriting to consider car hire costs and damaged/missing personal belongings if Mr A provides receipts and reasonable evidence of ownership and costs. £600 compensation already paid for distress and inconvenience. |
Summary
Mr A complained about AA Underwriting's handling of his car insurance claim following a December 2024 accident, including moving his car without permission, the valuation offered (£9,500), disposal of the vehicle as a total loss, and customer service. AA Underwriting accepted responsibility for moving the car and paid £600 compensation, but defended its valuation using trade guides and its decision to write off the car as Category B given repair costs exceeded £17,000. The ombudsman found AA Underwriting acted fairly and reasonably throughout, using standard industry practices for valuation and total loss assessment, and that the compensation offered appropriately reflected the distress caused.
The Ombudsman's reasoning
The ombudsman applied FCA industry rules requiring fair claim handling and used trade guides as the standard industry practice for valuing total loss claims. The ombudsman found AA Underwriting's valuation of £9,500 was fair as it exceeded the highest trade guide valuation and matched comparable vehicles. The ombudsman determined the car was reasonably deemed a total loss given the repair estimate far exceeded market value. The ombudsman found the £600 compensation fairly reflected the distress caused by moving the car without permission, and that AA Underwriting reasonably requested evidence for high-value personal belongings claims totalling over £8,000.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| AA Underwriting Insurance Company Limited, all decisions | 399 | 50% |
| Motor insurance, total loss valuation, all decisions | 3,483 | 35% |
| Motor insurance, all decisions | 24,103 | 35% |
Source
Read the original decision on the Financial Ombudsman Service website